Investment Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity securities portfolios as of:


June 30, 2022 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	2,185	—	(92)	2,093
Obligations of states and political subdivisions securities	18		—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	12,603		3	(667)	11,939
Agency commercial mortgage-backed securities	28,742		21	(1,890)	26,873
Non-agency commercial mortgage-backed securities	5,111		—	(341)	4,770
Asset-backed securities and other debt securities	6,675		5	(342)	6,338
Other securities(a)	806		—	—	806
Total available-for-sale debt and other securities	$	56,140	29	(3,332)	52,837
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	3	—	—	3
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	5	—	—	5

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $315, $489 and $2, respectively, at June 30, 2022, that are carried at cost.


December 31, 2021 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	85	1	—	86
Obligations of states and political subdivisions securities	18		—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	8,432		368	(18)	8,782
Agency commercial mortgage-backed securities	18,236		784	(69)	18,951
Non-agency commercial mortgage-backed securities	4,364		128	(13)	4,479
Asset-backed securities and other debt securities	5,287		32	(44)	5,275
Other securities(a)	519		—	—	519
Total available-for-sale debt and other securities	$	36,941	1,313	(144)	38,110
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	6	—	—	6
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	8	—	—	8

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $30, $486 and $3, respectively, at December 31, 2021, that are carried at cost.

The following table provides the fair value of trading debt securities and equity securities as of:


($ in millions)	June 30, 2022		December 31, 2021
Trading debt securities	$	293	512
Equity securities	326		376

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs:


	For the three months ended June 30,			For the six months ended June 30,
($ in millions)	2022		2021	2022	2021
Available-for-sale debt and other securities:
Realized gains	$	9	7	12	8
Realized losses	(9)		—	(9)	(10)
Impairment losses	—		—	—	(7)
Net realized gains (losses) on available-for-sale debt and other securities	$	—	7	3	(9)
Trading debt securities:
Net realized (losses) gains	—		1	(1)	(1)
Net unrealized gains (losses)	—		(8)	11	1
Net trading debt securities gains (losses)	$	—	(7)	10	—
Equity securities:
Net realized gains	—		1	1	4
Net unrealized (losses) gains	(32)		10	(62)	17
Net equity securities (losses) gains	$	(32)	11	(61)	21
Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(a)	$	(32)	11	(48)	12

(a)Excludes $1 and $4 of net securities losses for the three and six months ended June 30, 2022, respectively, and $1 and $3 of net securities losses for the three and six months ended June 30, 2021, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.

Contractual Maturity Schedule

The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of June 30, 2022 are shown in the following table:


($ in millions)	Available-for-Sale Debt and Other			Held-to-Maturity
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
Due in 1 year or less	$	436	435	—	—
Due after 1 year through 5 years	11,890		11,538	3	3
Due after 5 years through 10 years	30,490		28,663	—	—
Due after 10 years	12,518		11,395	2	2
Other securities	806		806	—	—
Total	$	56,140	52,837	5	5

(a)Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties.

Fair Value and Gross Unrealized Loss of Securities Available for Sale

The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of:


	Less than 12 months			12 months or more		Total
($ in millions)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
June 30, 2022
U.S. Treasury and federal agencies securities	$	1,914	(92)	—	—	1,914	(92)
Obligations of states and political subdivisions securities	1		—	—	—	1	—
Agency residential mortgage-backed securities	11,515		(637)	141	(30)	11,656	(667)
Agency commercial mortgage-backed securities	23,554		(1,675)	1,037	(215)	24,591	(1,890)
Non-agency commercial mortgage-backed securities	4,693		(341)	1	—	4,694	(341)
Asset-backed securities and other debt securities	5,374		(330)	480	(12)	5,854	(342)
Total	$	47,051	(3,075)	1,659	(257)	48,710	(3,332)
December 31, 2021
Agency residential mortgage-backed securities	$	935	(10)	161	(8)	1,096	(18)
Agency commercial mortgage-backed securities	2,886		(49)	424	(20)	3,310	(69)
Non-agency commercial mortgage-backed securities	1,052		(13)	—	—	1,052	(13)
Asset-backed securities and other debt securities	2,870		(34)	367	(10)	3,237	(44)
Total	$	7,743	(106)	952	(38)	8,695	(144)